China: CPI and PPI came below expectations - TDS

Sandeep Kanihama FXStreet Contributor

Analysts at TD Securities note that China’s January CPI came in at +1.7%/y and was below the market estimate of +1.8%/y while PPI was also disappointing at +0.1%/y, compared to an estimated +0.3%/y.

Key Quotes

“With CPI and PPI coming in below expectations, the market’s focus is shifting towards the prospect of deflation returning.”

“Data so far has indicated that activity is slowing and with the risk of depressed corporate earnings, China’s demand for imports could fall.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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